TUCSON, Ariz., Jan. 2, 2008 /PRNewswire/ -- Raytheon Company (NYSE: RTN), teamed with General Dynamics Ordnance and Tactical Systems, has been selected by the U.S. Army to develop the XM 1111 Mid-Range Munition for the Future Combat Systems' Mounted Combat System.

Valued at $232.3 million, the 63-month contract covers system design and development.

"This award establishes Raytheon as the leader in the development of affordable precision-guided projectiles," says Louise Francesconi, president of Raytheon Missile Systems. "We embrace our role as the primary provider of precision projectiles for the United States, and we look forward to working in partnership with the Army, General Dynamics Ordnance and Tactical Systems and our suppliers as we develop this revolutionary capability for the Army's current and future forces."

Mid-Range Munition incorporates proven technology using a dual-mode seeker suite comprising an imaging infrared sensor and a digital semi-active laser seeker. The dual-mode seeker was developed and successfully demonstrated during a two-year, Army-managed science and technology program.

In its proposal, Raytheon chose a multipurpose chemical energy warhead for the Mid-Range Munition. "For the beyond-line-of-sight mission, we believe that the chemical energy warhead, with proven lethality against the primary target of threat armor, is the best solution," said Rodger Elkins, director of advanced tactical weapons for Raytheon's Advanced Programs product line. "It provides better effects against the secondary targets of buildings, fortifications and light armor than a less versatile kinetic energy penetrator."

Raytheon's aggressive cost control initiatives provide the Army with a proven, low-risk, affordable product as it enters into the system design and development phase. Such innovative cost solutions are easily transferable to Raytheon's other precision-guided projectiles, such as the company's highly successful, combat-proven Excalibur 155 mm artillery projectile.

During the past 50 years, Raytheon has delivered more than 1.3 million precision-guided munitions, and General Dynamics Ordnance and Tactical Systems has been involved with the development and production of more than 3 million 120 mm tank cartridges. This vast development and production experience, coupled with the expertise gained in the development, production and fielding of Excalibur, ensures the Army will receive the world's best array of gun- fired, precision-guided weapons.

Work on the Mid-Range Munition will be performed at Raytheon facilities in Tucson, Ariz.

Raytheon Company, with 2006 sales of $19.7 billion, is a technology leader specializing in defense, homeland security and other government markets throughout the world. With a history of innovation spanning 85 years, Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as a broad range of mission support services. With headquarters in Waltham, Mass., Raytheon employs 72,000 people worldwide.

Note to Editors:

The XM 1111 Mid-Range Munition is a precision-guided, 120 mm, gun-fired smart ammunition that will provide a dual-mode, beyond-line-of-sight capability for Future Combat Systems' Mounted Combat System. Beyond-line-of- sight is an extension of the traditional direct-fire fight that enables stand- off engagements at greater ranges. With a beyond-line-of-sight capability, armored vehicle gunners can engage targets traditionally denied by intervening terrain or existing structures in an urban environment.

The initial contract award for this program was announced by the Department of Defense Dec. 21, 2007.

  Contact:
  John Farlow
  520.664.8243
  John_A_Farlow@raytheon.com
  http://www.raytheon.com/

SOURCE: Raytheon Company

CONTACT: John Farlow of Raytheon Company, +1-520-664-8243,
John_A_Farlow@raytheon.com

Web site: http://www.raytheon.com/